U.N. Panel To Review Chinese CO2 Offset request

A United Nations panel has called for a review of a request for carbon offsets from a Chinese project which destroys the harmful greenhouse gas called hydrofluorocarbon-23 (HFC-23).

The panel is investigating projects which destroy HFC-23 under the Clean Development Mechanism (CDM) after allegations of project developers gaming the system.

It suspended issuing carbon offsets to such projects while it carried out the inquiry.

However, the panel issued offsets to an Indian HFC-23 project last week, which prompted speculation in the market that the U.N. had either changed its stance on such projects or a mistake had been made.

A U.N. spokesman could not say on Thursday whether the panel was going to release more offsets to HFC-23 projects.

Jiangsu Meilan Chemical Company was seeking 3.49 million offsets called certified emissions reductions (CERs) from its HFC-23 destruction plant in Jiangsu Province in China, the U.N.'s website shows.

Next week, the panel will meet in Cancun, Mexico, and is expected to provide the market with more clarity over issuances to HFC-23 projects.